Tip Pool Violations

Employment Lawyers Holding Employers Responsible for Tip Pool Violations

The Fair Labor Standards Act (FSLA) established a federal minimum wage that must be complied with even if individual states don't have a minimum wage law. Currently, the federal minimum wage is $7.25 an hour. However, an employer can pay an employee less than the minimum wage if the employee is a "tipped employee" - someone who receives tips from patrons in return for a service they provide. In order to comply with FSLA requirements, employers must tell servers tips will be used to meet minimum wage requirements. Additionally, a server must regularly earn at least $30 per month in tips. Lastly, servers must be allowed to keep all of their tips - unless there is a tip pool for other tipped employees. When employers use a tip pool to pay non-tipped employees or when they take tips for themselves, they are in violation of FLSA requirements and liable for damages.

At the law office of Shellist|Lazarz|Slobin, our employment law attorneys hold employers financially liable for tip pool violations. If you believe your employer wrongfully distributes proceeds from a tip pool to non-tipped employees or themselves, contact tip pool violations lawyers at SLS today.

How do I know if there are Tip Pool Violations where I Work?

In general, a non-tipped employee is someone who is paid at least minimum wage and does not interact with customers - for example, a cook, dishwasher, or delivery personnel. Examples of tipped employees include

Waiters / waitresses
Bartenders
Bellhops
Concierge
Food preparers at a sandwich or deli store
Grocery baggers
Bus employees
Movers

If your employer has a tip pool and shares proceeds from it with employees who do not have direct interaction with customers, he or she may be in violation of wage laws. Further, any manager or employee that has the power to hire or fire others, determine employee pay, administer employee records, or supervise scheduling should not qualify for tips. Additionally, when an employer pays a non-tipped employee less than minimum wage and uses the tip pool to bring him or her up to minimum wage, a tip pool violation has occurred.

What should I do if I think there are Tip Pool Violations?

If you believe your employer is violating wage laws through tip pool violations, contact employment law attorneys at SLS today. We can evaluate your case and discuss how best to proceed to protect your job and your pay. If you confront your employer first without understanding what the law says and what your protections are, you could lose your job and any chance of documenting tip pool violations.

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Shellist | Lazarz | Slobin is not affiliated with the Equal Employment Opportunity Commission. Please click on the link to contact the EEOC.

The law firm of Shellist | Lazarz | Slobin in Houston, Texas specializes in employment law. We have a nation-wide practice that represents employers and employees across the United States and throughout Texas including Dallas, Fort Worth, San Antonio, Austin, Galveston, Pasadena, Bellaire, Arcola, Baytown, Port Arthur, College Station, Brownsville, Beaumont, Orange, Vidor and McAllen.

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